Sales Process Flashcards

What does 'days on market' (DOM) primarily indicate to a buyer?

Answer: How long a property has been listed without going under contract

DOM measures elapsed time since listing; high DOM often signals overpricing or property issues that buyers should investigate.

Which clause in a purchase contract specifies what personal property stays with the home?

Answer: Inclusion/exclusion clause

Inclusion and exclusion clauses define which fixtures and personal property are part of the sale versus what the seller retains.

A buyer wants to offer below list price because the home needs repairs. What strategy best supports this approach?

Answer: Include repair estimates or inspection findings to justify the reduced offer

Documenting repair costs gives the seller a factual basis to accept a lower price rather than viewing it as an arbitrary lowball.

What is an escalation clause in a purchase offer?

Answer: A provision that automatically increases the buyer's offer by a set amount above competing offers up to a maximum

An escalation clause lets a buyer compete in multiple-offer situations by automatically outbidding competitors by a specified increment up to a cap.

What happens to earnest money if a buyer backs out due to a valid contingency?

Answer: The earnest money is returned to the buyer

When a buyer exercises a valid contingency, the contract is terminated without penalty and the earnest money is refunded.

Which action best demonstrates a listing agent's fiduciary duty of loyalty to the seller?

Answer: Withholding the seller's urgent need to sell to protect negotiating position

Loyalty requires the agent to protect the seller's confidential information, including motivations that could weaken their negotiating position.

A seller accepts an offer contingent on the buyer's current home selling. This is known as a:

Answer: Home sale contingency

A home sale contingency makes the purchase dependent on the buyer closing on their existing property within a defined timeframe.